Gold Marketwatch – 18/05/2009

Market Commentary
Gold opened at 921.00/922.00 and gathered steam on the back of stronger equity markets and a softening USD, reaching an intraday high of 931.50/932.50. However this move quickly reversed and the metal tumbled, triggering stops, collapsing to a low of 918.50/919.50. Good physical demand helped the metal recover from it’s lows, ticking higher, finding resistance near 924.00. It was stuck in a holding pattern as the session unwound, closing at 920.50/921.50.

Technical Commentary
Gold spent time above 930 but failed to hold and sold off to finish around 921. Scale up selling in front of 935 remains and we will need to take this resistance out in the near future if we are to have a chance at re-visiting the March high of 966. We continue to suggest using a trailing stop loss below 909.